Paul Accuses Regulators Of Trying To Steal Assets

Former CenTrust Chairman David Paul fired another shot at federal regulators on Friday, claiming in a court filing that they are trying to steal his assets.

Paul filed a motion asking U.S. District Judge Edward Davis in Miami to hold a hearing on the Office of Thrift Supervision`s plan to appoint an administrator to take control of Paul`s assets.

Regulators ousted Paul as CenTrust chairman shortly before they took control of the Miami thrift in February 1990, at a loss of $1.7 billion.

The OTS froze Paul`s assets and, through a suit presided over by Davis, wants Paul to pay $15 million to cover CenTrust deposits allegedly diverted to support his extravagant lifestyle.

Regulators have questioned spending at CenTrust`s Miami headquarters, which was furnished with gold-plated plumbing fixtures, green marble and other luxuries.

The government also questioned a $5 million retirement fund moved overseas by Paul and collections of Old Masters paintings and first-edition books.

But Paul claims he does not have enough money to hire an attorney unless OTS unfreezes his assets. Davis has stayed the money issue three times, saying the case cannot go forward until Paul gets an attorney.

``This shouldn`t happen in America,`` Paul said in a prepared statement.

He claimed that OTS Director Timothy Ryan has ignored documents submitted by Paul about his financial condition and that Ryan has incorrectly categorized some other documents to Davis.

Paul said OTS claims that he spent more than $49,000 for personal living expenses during a nine-week period this year. But Paul said 40 percent of that amount, or $19,600, was spent on his legal affairs.

``Payment for an administrator would be a waste of my assets and an administrator is not justified by my conduct,`` Paul said in his statement.

A spokesman for the OTS could not be reached for comment. The agency has charged that Paul has squirreled away nearly $1 million with attorneys and has more elsewhere.